Recession fears may cause new problems for the Biden administration

The Federal Reserve It looks to slow spiraling inflation and points to the possibility that the US will suffer from high unemployment, declining economic growth and stagnation, which could lead to more problems for the Biden administration.

Republicans have already blamed the administration and Democratic lawmakers Inflation levels not seen in 40 yearsciting last year’s COVID-19 stimulus, as the nation prepares for midterm elections in November.

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Joe Biden

President Joe Biden and the White House COVID-19 response team participate in a virtual call with the National Governors Association from the South Courthouse of the Eisenhower Executive Office Building at the White House Complex on Monday, Dec. (Kent Nishimura/Los Angeles Times via Getty Images/Getty Images)

“It is this president and his entire Democratic government that has drained American families’ money, and every poll shows that our citizens understand this sad truth very well,” Senate Minority Leader Mitch McConnell, Republican of Kentucky, said in his recent remarks about the matter. Senate floor.

President Biden Facing high inflation since last year, Russia’s war in Ukraine, which began in late February, has caused further economic complications.

In April, consumer prices rose 8.3% from a year earlier, forcing Americans to pay more for gasoline, groceries and other expenses.

the worst, Recession fearswhich is likely to come in 2023 according to some estimates, paints a new bleak outlook for the US economy.

The president and his economic team insisted the economy is well-positioned to withstand setbacks, highlighting factors such as a strong labor market and low unemployment rates.

National Economic Council Director Brian Dees said Sunday on “State of the Union.”

Inflation Rises 8.3% in April, Approaching a 40-Year High

Brian Dess

National Economic Council Director Brian Dees talks about rising food prices at a news conference at the White House on September 8, 2021, in Washington, DC. (Photo by Kevin Deitch/Getty Images/Getty Images)

As part of an effort to improve Americans’ view of the economy, Biden will travel across the country to advance his claims to recovery. him too trying to persuade voters His administration offers better economic policies than Republicans. The administration claimed that the Republican Party would not do enough to curb inflation and would look to raise taxes on American families.

Recent polls show the economy high on voters’ list of priorities and Republicans are pointing to the current state of the economy in an effort to boost their chances of control of Congress.

Federal Reserve Chairman Jerome Powell told the Wall Street Journal last week that “there may be some pain” regarding efforts to bring down inflation and that the US could see small jumps in unemployment.

Deese said Sunday that the White House supports the Fed’s response.

“We need to give the Federal Reserve the space and independence to do its job, which is to control inflation,” he said.

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Inflation in food prices

A man shops at a Safeway grocery store in Annapolis, Maryland, on May 16, 2022, as Americans prepare for the shock of summer posters as inflation continues to grow. (Photo by Jim Watson/AFP via Getty Images)/Getty Images)

Larry Summers, former President Bill Clinton’s Treasury Secretary, told the Wall Street Journal earlier this month that he believed a recession was likely in the next two years.

“I think the stakes are very high,” he said.

Biden continued to push for higher taxes on the wealthy and large corporations to fund investments in social programs.

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The administration argued that these social programs would cut costs for ordinary Americans, but the president’s proposal to build back better that included those initiatives failed to pass through the Senate after West Virginia Democratic Senator Joe Manchin and Republicans opposed the measure, warning that increased spending would lead to Exacerbation of the problem of inflation.

The Wall Street Journal Contribute to this report.

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